Financial Abuse of Seniors Hits Record

Government data indicates that American banks reported a record 24,454 suspected cases of senior financial abuse to the Treasury Department last year, more than twice the number five years earlier, reports the Wall Street Journal . The surge occurred as new federal and state laws are spurring banks to more proactively remediate frauds and scams that target older customers. Banks are fortifying training for employees on how to identify, stop, and report issues without violating customer privacy, as well as recognize early signs of cognitive decline. "Anything having to do with senior financial abuse or exploitation affects a huge part of our customer base," says the American Bankers Association's Rob Rowe. Such exploitation is not always obvious and can raise privacy issues, or risk estranging customers. The delay or cancellation of transactions due to fraud also could cause customers to lose legitimate opportunities such as timely investments. The Senior Safe Act permits bank employees to report suspected cases of senior financial abuse to police and adult protective services, while certain states allow bank employees to refuse or delay transactions, or alert family members when senior customers request suspicious money transfers. Some bankers blame a boom in fraud cases targeting seniors on growing social-media use by older Americans.